An evaluation of Loctite's decision to introduce Robert Mondavi Corp Caliterra C Executive Summary, its brand-new instantaneous adhesive dispenser has heighted the fact that the dispenser would not be matching the company's existing product line. The truth that Loctite is a leader in instant adhesives and operates in a market which has low price sensitivity indicates that offering a low priced adhesive under Loctite's name would only be minimizing the company's earnings in the long run. With dangers of sales cannibalization and sales of Loctite's luxury dispenser's being threatened by the brand-new possible launch, Loctite does not have a legitimate argument for launching Robert Mondavi Corp Caliterra C Executive Summary other than the reality that the model of the new invention has been established and is ready to be launched under the business's name.
A suggested marketing mix in case the company chooses to proceed with the launch recommends the cost to be listed below $250 with the item being targeted at a specific niche section such as that of the 'motor vehicle repairs' so that the company does not wind up losing the marketplace share of its high-end models to Robert Mondavi Corp Caliterra C Executive Summary because of the product's low cost. Distribution through distributors is recommended based on the marketing mix instead of opting for the sales group because the cost of each sales call is $120 which would not be an economically possible move for a low cost item. An advertising campaign can not be removed from the marketing mix since the initial awareness has to be produced in order to reach out to prospective consumers in the targeted section.